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Division of Welfare and Supportive Services F-400 Medical Assistance Manual TRANSFER OF ASSETS 23 Oct 01 MTL 04/23 OVERVIEW

TRANSFER OF ASSETS

F-400 OVERVIEW

For purposes of this section, assets include all income and resources of the individual and the individual’s spouse. This includes income or resources which the individual or the individual's spouse is entitled to but does not receive because of any action by:

a. the individual or the individual's spouse;

b. a person, including a court or administrative body with legal authority to act in place of, or on behalf of the individual or the individual's spouse; or

c. any person, including a court or administrative body, acting at the direction or upon the request of the individual or the individual's spouse.

For purposes of this section, the term "assets to which an individual or spouse is entitled" includes assets to which the individual is entitled or would be entitled if action had not been taken to avoid receiving the asset.

The following are examples of actions which would cause income or resources not to be received:

a. irrevocably waiving pension income;

b. waiving the right to receive an inheritance;

c. not accepting or accessing injury settlements;

d. tort settlements which are diverted by the defendant into a trust or similar device to be held for the benefit of an individual who is a plaintiff; and

e. refusal to take legal action to obtain a court ordered payment that is not being paid, such as child support or alimony.

Failure to cause assets to be received does not constitute a transfer of assets for less than fair market value in all instances. Example: the individual may not be able to afford to take the necessary action to obtain the asset, or the cost of obtaining the asset may be greater than the asset is worth, thus effectively rendering the asset worthless to the individual. Examine the specific circumstances of each case before making a decision whether an uncompensated asset transfer occurred.

Note: Not applicable to Medicare beneficiaries, public law and prior medical categories.

F-405 DEFINITIONS

Transfer of Assets – Assets (income/resources) which are given away, sold or disposed of for less than fair market value to obtain or retain Medicaid eligibility. This includes all income and resources to which the customer or spouse is entitled or would